about to make my very first deal, and im full of excitement. I spoke with the realtor and this is the sellers situation. Please give advice if u can on how i should proceed.
Asking price is 225.000. Seller is an old lady. She already has a new flat shes moving into in july. The realtor told me her morgage on the place exceeds the asking price and said its unlikely she will go under askingprice. Which already seems low compared to neighbourhood. The house has been on the market for 30 days, and the house was built in 1948. The house looks to be in good condition, but will naturally require some minor renovation.
Negotiations start this friday and i wish to be prepared.
My advantages are that im a cash buyer and i can close as fast as possible.
Ask for closing costs and maybe 5k off the asking price. Tell her its all you have. Something is better than nothing.
My thinking is this . The mortgage company is not going to release title unless the mortgage is fully paid off. She could sell you the house for $1 but the title remains with the mortgage holder same as a lien holder on a car. You can become the registered owner and have the car to use but the lien owner will not sign over the title to the car to you unless they are fully paid off. Am I missing something here?
If the market value of the house is higher than the mortgage balance that could make a difference on whether this is really a good deal or not just, depends.
what do you plan to do with the house @Morgan Nilsen
do your due diligence then post the numbers to the site,you will get lots of feedback if this is a good deal or not
im happy with the numbers mr Brogan.
Asking price is 225000. Closing costs are 6000. Im expecting renovation to cost about 20000.
Anual costs are aprox 25000 ink taxes and all other expenses.
Montly rent is aprox 5000. Making an anual income of 60000.
Calculating for vacancy and repairs, im expecting somewhere between 1000 and 2000 in montly cashflow.
Im expecting an ROI of aprox 11%.
So, the mortgage balance is more than the sales price, let alone 8% or so selling costs. Is the owner bringing the cash to the table, or are they trying a short sale?
The rent is amazing for this property!! Is this a single family or multi unit?? Taxes seem very high as well though. What city/country is this property located in?
@Chris Seveney , his profile indicates he is buying his first property (this one, I assume) in Budapest. Those numbers may not be US dollars.
forgive me. I am new to this and i forgot to mention that this property is in sweden. The prices are not in dollars but the values dont matter so much as the markets are very similar. The currency is in swedish kroner for those interested, but i invite you to please help on the topic of the post.
How can i leverage my situation so that i can drive the price down. Any tecniques i can use other than look disinterested and tell her i need to close fast?
Budapest was the original plan but this property came up for me first and its such a good deal that im pushing budapest back a few months
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